A number of large hedge funds, informed wait of summing up the referendum on the British exit from the European Union and its consequences, made a bet on further depreciation of the pound sterling and the value of shares of British companies, according to the newspaper Financial Times (FT).
“The pound is clearly more likely to fall”, — said the publication Manager of hedge Fund Algebris Alberto Gallo, according to which the Bank of England is unlikely to provide a national currency much support. “The Bank of England has neither large reserves nor enough opportunities to improve rates,” he said.
According to traders, hedge funds are beginning to open short positions against the pound, using nothing more costly options, and cash.
“Short bets against the pound — the General idea of trading, right now people are desperately trying to get into the game big-time,” explained the FT Manager of one of the funds managing assets of several billion dollars.
Representatives of the hedge Fund also announced the release of British assets, especially stocks are traded operating in the domestic UK market of companies whose quotes are included in the calculation of the FTSE 250.
After the victory of the supporters of Brexit the British pound fell to its lowest since 1985 $1,3121. However, respondents to the FT, analysts do not exclude that in the next few weeks, the pound may fall to $1.1. So cheap it was 31 years since 1985, when it dropped to $1,04.
On the eve of the referendum about the inevitable fall of the pound in case of a victory of supporters of Brexit, said the American billionaire George Soros, whose fortune Forbes estimates at $24.9 billion (23rd place in the global ranking of billionaires). He, in particular, predicted that Britain would vote to leave the EU, the pound could fall by more than 20%, so the depreciation will be “stronger and more destructive” than a 15 percent depreciation in 1992.
After the announcement of the British referendum, the FTSE 250 fell by more than 13% (from 17 to 14 333 967 points), however, on Tuesday resumed its growth. In the course of trading on Tuesday, it rose more than 3%, reaching the maximum level of 15 460 points.
Simultaneously, approximately 1% and the British currency to the dollar: at the maximum, the pound rose to $1,335.